Correlation Between Lee Ku and Dongbang Ship
Can any of the company-specific risk be diversified away by investing in both Lee Ku and Dongbang Ship at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lee Ku and Dongbang Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lee Ku Industrial and Dongbang Ship Machinery, you can compare the effects of market volatilities on Lee Ku and Dongbang Ship and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Lee Ku with a short position of Dongbang Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lee Ku and Dongbang Ship.
Diversification Opportunities for Lee Ku and Dongbang Ship
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lee and Dongbang is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lee Ku Industrial and Dongbang Ship Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbang Ship Machinery and Lee Ku is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Lee Ku Industrial are associated (or correlated) with Dongbang Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbang Ship Machinery has no effect on the direction of Lee Ku i.e., Lee Ku and Dongbang Ship go up and down completely randomly.
Pair Corralation between Lee Ku and Dongbang Ship
Assuming the 90 days trading horizon Lee Ku Industrial is expected to under-perform the Dongbang Ship. But the stock apears to be less risky and, when comparing its historical volatility, Lee Ku Industrial is 1.14 times less risky than Dongbang Ship. The stock trades about -0.02 of its potential returns per unit of risk. The Dongbang Ship Machinery is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 320,000 in Dongbang Ship Machinery on November 7, 2024 and sell it today you would earn a total of 8,000 from holding Dongbang Ship Machinery or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lee Ku Industrial vs. Dongbang Ship Machinery
Performance |
| Timeline |
| Lee Ku Industrial |
| Dongbang Ship Machinery |
Lee Ku and Dongbang Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lee Ku and Dongbang Ship
The main advantage of trading using opposite Lee Ku and Dongbang Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lee Ku position performs unexpectedly, Dongbang Ship can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dongbang Ship will offset losses from the drop in Dongbang Ship's long position.| Lee Ku vs. AptaBio Therapeutics | Lee Ku vs. Daewoo SBI SPAC | Lee Ku vs. Dream Security co | Lee Ku vs. Microfriend |
| Dongbang Ship vs. Samsung Card Co | Dongbang Ship vs. EBEST Investment Securities | Dongbang Ship vs. Koh Young Technology | Dongbang Ship vs. Hansol Chemica |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |